Our topic today is how we collect rent at KTB Property Management. We keep the process efficient and professional, which means we are able to take care of both our tenants and our owners.
We use the best technology available to collect rent. Our software and computers are on the cutting edge and over 60 percent of our tenants pay rent online. This means you get paid quicker, because we receive the money faster and we can pass it on to you. Our owners are paid before the 10th of every month.
We also make sure to collect security deposits that are in excess of one month’s rent. We hold those security deposits in a trust account until the tenant moves out. If we have a tenant leave as scheduled, we return the security deposit after we conduct an inspection, and if the tenant leaves before the end of the lease term we have those security funds available to take care of costs associated with that move out.
It’s very rare that we receive bounced checks or notices of insufficient funds. However, if we do receive a rent payment that bounces or gets returned, we are notified by our bank two days before we hear about it by mail. That means we can talk to the tenant right away and get the rent money in your account immediately. This helps you to make your mortgage payment in plenty of time. When your mortgage is due on the 15th of the month, you know you’ll have a few extra days to pay when you get your rent payment by the 10th. You won’t have to keep an extra month’s house payment in reserve. We don’t require a reserve from our owners and we hope you don’t either. It’s a priority to pay you in a timely manner.
At the end of the year, we will send you a 1099 form for your tax records. You’ll also get a detailed account statement with all the information that occurred at your property. That includes a 12 month cash flow statement that demonstrates where your money was spent, so you’ll know what is deductible.
If you have any questions, or you’d like more information on collecting rent form tenants, please contact us at KTB Property Management, and we’d be happy to help you.